[Representation] Corporate Criminal

Barun Law Represents Design Frim Executives Not to be Indicted for Joint or Aiding and Abetting Embezzlement

Case Overview and Key Issues

• In 2019, the client secured a design service contract worth approximately KRW 20 billion. At the request of the ordering party, the client signed a so-called “UP contract,” which included costs for resolving complaints in addition to the initially agreed price. The client also converted the corresponding amounts into cash and delivered them as requested by the ordering party.
• However, after an employee of the ordering party resigned, he reported the matter to a government agency. As a result, investigations were initiated, and the case was referred to the prosecution, revealing the key facts of the case.
• Although the executives of the client had not been officially reported to authorities, based on prior experiences, it was anticipated that they would face search and seizure operations and potential criminal charges due to their involvement in fund allocation and transfers.
• The client engaged us with exceptional expertise in anti-corruption cases, requesting the following: 1) prevention of the executives’ arrest; and 2) prevention of search and seizure operations on the client and subcontractors involved in fund allocation.

Our Legal Strategy

• After taking on the case, we conducted a comprehensive analysis of the facts and overall situation, concluding that fully cooperating with the investigation and seeking leniency would be the most favorable approach.
• We presented arguments to the entire investigative team, emphasizing our willingness to cooperate fully in uncovering the truth in exchange for leniency.
• Typically, identifying the source of funds takes two to three months. However, by working closely with the client, we compiled and voluntarily submitted all financial records related to the fund allocation and transfer, including detailed written statements from the executives.
• As a result, the prosecution determined that there was no need for a search and seizure operation against the client or an arrest investigation of its executives. Instead, the prosecution immediately launched search and seizure operations targeting the ordering party and public officials who had received the funds, thereby advancing the investigation successfully.
• Following this success, the prosecution accepted our argument that companies, like the client, which had merely complied with the ordering party’s requests to allocate funds later used for bribery, should not be prosecuted if they actively cooperated with the investigation. The prosecution further recognized that such an approach would aid in the broader anti-corruption investigations.

Outcome and Significance

• By consulting us early in the process, the client effectively navigated the investigation without undergoing search and seizure operations. Furthermore, its executives were not subjected to any criminal prosecution, allowing them to avoid all legal liabilities.
• Moreover, by meticulously organizing and submitting all relevant evidence and providing only accurate factual statements, the defense ensured that the indicted individuals fully accepted the evidence related to the client. Consequently, the executives were not required to appear in court as witnesses.

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□? Attorneys in charge: Cho Jae-Bin, Kang Min-Jae

?Attorney Cho, Jae Bin's profile

?Attorney Kang, Min Jae's profile